The Merger of Union Bank of Switzerland and Swiss Bank Corporation (B): Integration Planning SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Finance & Accounting
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of The Merger of Union Bank of Switzerland and Swiss Bank Corporation (B): Integration Planning
With their announcement on December 8, 1997, of their proposed merger, the CEOs of Union Bank of Switzerland and Swiss Bank Corporation must prepare a plan of integration of the two firms. This case presents the press release of the announcement and relates the reaction of investors and journalists. The case also presents a framework for setting the strategy of post-merger integration and summarizes the integration task before the executives. The tasks for the students include: 1. Assess the public communication of this deal. The public announcement launches the integration effort and sets a tone that can help or hinder the subsequent combination. 2. Survey the integration planning process. The executives of the two firms were committed to having a detailed integration plan in place before the consummation of the deal--this is consistent with current thinking about the desirability of avoiding a slow integration. Thus, the case is an illustration of the kinds of issues that must be resolved quickly. 3. Describe and evaluate the integration strategy of the new firm. The case surveys the process of integration planning between the announcement and consummation dates of the merger and outlines the approaches in the various business units. The student must consider the influence of various strategic issues including the balance of autonomy versus absorption, relatedness, and control versus consultation (these are described in the case.) The (A) case in the series describes the proposed terms of merger and invites students to value the benefits of the deal and assess the strategic motives. The (C) case summarizes the integration effort and the economic results over the five years following the transaction. It is recommended that the instructor distribute the (A) case for advance preparation by students and hold the (B) and (C) cases for discussion after the (A) case.
Swot Analysis of "The Merger of Union Bank of Switzerland and Swiss Bank Corporation (B): Integration Planning" written by Robert F. Bruner includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Integration Announcement facing as an external strategic factors. Some of the topics covered in The Merger of Union Bank of Switzerland and Swiss Bank Corporation (B): Integration Planning case study are - Strategic Management Strategies, Financial management, Mergers & acquisitions, Strategic planning and Finance & Accounting.
Some of the macro environment factors that can be used to understand the The Merger of Union Bank of Switzerland and Swiss Bank Corporation (B): Integration Planning casestudy better are - – talent flight as more people leaving formal jobs, increasing government debt because of Covid-19 spendings, cloud computing is disrupting traditional business models, digital marketing is dominated by two big players Facebook and Google, competitive advantages are harder to sustain because of technology dispersion, increasing transportation and logistics costs, wage bills are increasing,
customer relationship management is fast transforming because of increasing concerns over data privacy, geopolitical disruptions, etc
Introduction to SWOT Analysis of The Merger of Union Bank of Switzerland and Swiss Bank Corporation (B): Integration Planning
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in The Merger of Union Bank of Switzerland and Swiss Bank Corporation (B): Integration Planning case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Integration Announcement, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Integration Announcement operates in.
According to Harvard Business Review, 75% of the managers use SWOT analysis for various purposes such as – evaluating current scenario, strategic planning, new venture feasibility, personal growth goals, new market entry, Go To market strategies, portfolio management and strategic trade-off assessment, organizational restructuring, etc.
SWOT Objectives / Importance of SWOT Analysis and SWOT Matrix
SWOT analysis of The Merger of Union Bank of Switzerland and Swiss Bank Corporation (B): Integration Planning can be done for the following purposes –
1. Strategic planning using facts provided in The Merger of Union Bank of Switzerland and Swiss Bank Corporation (B): Integration Planning case study
2. Improving business portfolio management of Integration Announcement
3. Assessing feasibility of the new initiative in Finance & Accounting field.
4. Making a Finance & Accounting topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Integration Announcement
Strengths The Merger of Union Bank of Switzerland and Swiss Bank Corporation (B): Integration Planning | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Integration Announcement in The Merger of Union Bank of Switzerland and Swiss Bank Corporation (B): Integration Planning Harvard Business Review case study are -
Highly skilled collaborators
– Integration Announcement has highly efficient outsourcing and offshoring strategy. It has resulted in greater operational flexibility and bringing down the costs in highly price sensitive segment. Secondly the value chain collaborators of the firm in The Merger of Union Bank of Switzerland and Swiss Bank Corporation (B): Integration Planning HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Digital Transformation in Finance & Accounting segment
- digital transformation varies from industry to industry. For Integration Announcement digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Integration Announcement has successfully integrated the four key components of digital transformation – digital integration in processes, digital integration in marketing and customer relationship management, digital integration into the value chain, and using technology to explore new products and market opportunities.
Ability to lead change in Finance & Accounting field
– Integration Announcement is one of the leading players in its industry. Over the years it has not only transformed the business landscape in its segment but also across the whole industry. The ability to lead change has enabled Integration Announcement in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Low bargaining power of suppliers
– Suppliers of Integration Announcement in the sector have low bargaining power. The Merger of Union Bank of Switzerland and Swiss Bank Corporation (B): Integration Planning has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Integration Announcement to manage not only supply disruptions but also source products at highly competitive prices.
Ability to recruit top talent
– Integration Announcement is one of the leading recruiters in the industry. Managers in the The Merger of Union Bank of Switzerland and Swiss Bank Corporation (B): Integration Planning are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Training and development
– Integration Announcement has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in The Merger of Union Bank of Switzerland and Swiss Bank Corporation (B): Integration Planning Harvard Business Review case study by analyzing – employees retention, in-house promotion, loyalty, new venture initiation, lack of conflict, and high level of both employees and customer engagement.
Sustainable margins compare to other players in Finance & Accounting industry
– The Merger of Union Bank of Switzerland and Swiss Bank Corporation (B): Integration Planning firm has clearly differentiated products in the market place. This has enabled Integration Announcement to fetch slight price premium compare to the competitors in the Finance & Accounting industry. The sustainable margins have also helped Integration Announcement to invest into research and development (R&D) and innovation.
High brand equity
– Integration Announcement has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Integration Announcement to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Superior customer experience
– The customer experience strategy of Integration Announcement in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Effective Research and Development (R&D)
– Integration Announcement has innovation driven culture where significant part of the revenues are spent on the research and development activities. This has resulted in, as mentioned in case study The Merger of Union Bank of Switzerland and Swiss Bank Corporation (B): Integration Planning - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Strong track record of project management
– Integration Announcement is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Learning organization
- Integration Announcement is a learning organization. It has inculcated three key characters of learning organization in its processes and operations – exploration, creativity, and expansiveness. The work place at Integration Announcement is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in The Merger of Union Bank of Switzerland and Swiss Bank Corporation (B): Integration Planning Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Weaknesses The Merger of Union Bank of Switzerland and Swiss Bank Corporation (B): Integration Planning | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of The Merger of Union Bank of Switzerland and Swiss Bank Corporation (B): Integration Planning are -
High dependence on star products
– The top 2 products and services of the firm as mentioned in the The Merger of Union Bank of Switzerland and Swiss Bank Corporation (B): Integration Planning HBR case study still accounts for major business revenue. This dependence on star products in has resulted into insufficient focus on developing new products, even though Integration Announcement has relatively successful track record of launching new products.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study The Merger of Union Bank of Switzerland and Swiss Bank Corporation (B): Integration Planning, is just above the industry average. Integration Announcement needs to redesign the compensation structure and incentives to increase the revenue per employees. Some of the steps that it can take are – hiring more specialists on project basis, etc.
Workers concerns about automation
– As automation is fast increasing in the segment, Integration Announcement needs to come up with a strategy to reduce the workers concern regarding automation. Without a clear strategy, it could lead to disruption and uncertainty within the organization.
High dependence on existing supply chain
– The disruption in the global supply chains because of the Covid-19 pandemic and blockage of the Suez Canal illustrated the fragile nature of Integration Announcement supply chain. Even after few cautionary changes mentioned in the HBR case study - The Merger of Union Bank of Switzerland and Swiss Bank Corporation (B): Integration Planning, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Integration Announcement vulnerable to further global disruptions in South East Asia.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Integration Announcement is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study The Merger of Union Bank of Switzerland and Swiss Bank Corporation (B): Integration Planning can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Skills based hiring
– The stress on hiring functional specialists at Integration Announcement has created an environment where the organization is dominated by functional specialists rather than management generalist. This has resulted into product oriented approach rather than marketing oriented approach or consumers oriented approach.
High bargaining power of channel partners
– Because of the regulatory requirements, Robert F. Bruner suggests that, Integration Announcement is facing high bargaining power of the channel partners. So far it has not able to streamline the operations to reduce the bargaining power of the value chain partners in the industry.
High operating costs
– Compare to the competitors, firm in the HBR case study The Merger of Union Bank of Switzerland and Swiss Bank Corporation (B): Integration Planning has high operating costs in the. This can be harder to sustain given the new emerging competition from nimble players who are using technology to attract Integration Announcement 's lucrative customers.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study The Merger of Union Bank of Switzerland and Swiss Bank Corporation (B): Integration Planning, in the dynamic environment Integration Announcement has struggled to respond to the nimble upstart competition. Integration Announcement has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Products dominated business model
– Even though Integration Announcement has some of the most successful products in the industry, this business model has made each new product launch extremely critical for continuous financial growth of the organization. firm in the HBR case study - The Merger of Union Bank of Switzerland and Swiss Bank Corporation (B): Integration Planning should strive to include more intangible value offerings along with its core products and services.
Low market penetration in new markets
– Outside its home market of Integration Announcement, firm in the HBR case study The Merger of Union Bank of Switzerland and Swiss Bank Corporation (B): Integration Planning needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Opportunities The Merger of Union Bank of Switzerland and Swiss Bank Corporation (B): Integration Planning | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The opportunities highlighted in the Harvard Business Review case study The Merger of Union Bank of Switzerland and Swiss Bank Corporation (B): Integration Planning are -
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Integration Announcement can build a diversified supply chain model across various countries in - South East Asia, India, and other parts of the world. This reconfiguration of global supply chain can help, as suggested in case study, The Merger of Union Bank of Switzerland and Swiss Bank Corporation (B): Integration Planning, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Leveraging digital technologies
– Integration Announcement can leverage digital technologies such as artificial intelligence and machine learning to automate the production process, customer analytics to get better insights into consumer behavior, realtime digital dashboards to get better sales tracking, logistics and transportation, product tracking, etc.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Integration Announcement can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Integration Announcement is facing challenges because of the dominance of functional experts in the organization. The Merger of Union Bank of Switzerland and Swiss Bank Corporation (B): Integration Planning case study suggests that firm can utilize new technology to build more coordinated teams and streamline operations and communications using tools such as CAD, Zoom, etc.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Integration Announcement in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Finance & Accounting segment, and it will provide faster access to the consumers.
Changes in consumer behavior post Covid-19
– Consumer behavior has changed in the Finance & Accounting industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. Integration Announcement can take advantage of these changes in consumer behavior to build a far more efficient business model. For example consumer regular ordering of products can reduce both last mile delivery costs and market penetration costs. Integration Announcement can further use this consumer data to build better customer loyalty, provide better products and service collection, and improve the value proposition in inflationary times.
Developing new processes and practices
– Integration Announcement can develop new processes and procedures in Finance & Accounting industry using technology such as automation using artificial intelligence, real time transportation and products tracking, 3D modeling for concept development and new products pilot testing etc.
Better consumer reach
– The expansion of the 5G network will help Integration Announcement to increase its market reach. Integration Announcement will be able to reach out to new customers. Secondly 5G will also provide technology framework to build new tools and products that can help more immersive consumer experience and faster consumer journey.
Creating value in data economy
– The success of analytics program of Integration Announcement has opened avenues for new revenue streams for the organization in the industry. This can help Integration Announcement to build a more holistic ecosystem as suggested in the The Merger of Union Bank of Switzerland and Swiss Bank Corporation (B): Integration Planning case study. Integration Announcement can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Integration Announcement can use these opportunities to build new business models that can help the communities that Integration Announcement operates in. Secondly it can use opportunities from government spending in Finance & Accounting sector.
Low interest rates
– Even though inflation is raising its head in most developed economies, Integration Announcement can still utilize the low interest rates to borrow money for capital investment. Secondly it can also use the increase of government spending in infrastructure projects to get new business.
Using analytics as competitive advantage
– Integration Announcement has spent a significant amount of money and effort to integrate analytics and machine learning into its operations in the sector. This continuous investment in analytics has enabled, as illustrated in the Harvard case study The Merger of Union Bank of Switzerland and Swiss Bank Corporation (B): Integration Planning - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Integration Announcement to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Use of Bitcoin and other crypto currencies for transactions
– The popularity of Bitcoin and other crypto currencies as asset class and medium of transaction has opened new opportunities for Integration Announcement in the consumer business. Now Integration Announcement can target international markets with far fewer capital restrictions requirements than the existing system.
Threats The Merger of Union Bank of Switzerland and Swiss Bank Corporation (B): Integration Planning External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study The Merger of Union Bank of Switzerland and Swiss Bank Corporation (B): Integration Planning are -
Instability in the European markets
– European Union markets are facing three big challenges post Covid – expanded balance sheets, Brexit related business disruption, and aggressive Russia looking to distract the existing security mechanism. Integration Announcement will face different problems in different parts of Europe. For example it will face inflationary pressures in UK, France, and Germany, balance sheet expansion and demand challenges in Southern European countries, and geopolitical instability in the Eastern Europe.
Environmental challenges
– Integration Announcement needs to have a robust strategy against the disruptions arising from climate change and energy requirements. EU has identified it as key priority area and spending 30% of its 880 billion Euros European post Covid-19 recovery funds on green technology. Integration Announcement can take advantage of this fund but it will also bring new competitors in the Finance & Accounting industry.
Regulatory challenges
– Integration Announcement needs to prepare for regulatory challenges as consumer protection groups and other pressure groups are vigorously advocating for more regulations on big business - to reduce inequality, to create a level playing field, to product data privacy and consumer privacy, to reduce the influence of big money on democratic institutions, etc. This can lead to significant changes in the Finance & Accounting industry regulations.
Capital market disruption
– During the Covid-19, Dow Jones has touched record high. The valuations of a number of companies are way beyond their existing business model potential. This can lead to capital market correction which can put a number of suppliers, collaborators, value chain partners in great financial difficulty. It will directly impact the business of Integration Announcement.
Technology acceleration in Forth Industrial Revolution
– Integration Announcement has witnessed rapid integration of technology during Covid-19 in the Finance & Accounting industry. As one of the leading players in the industry, Integration Announcement needs to keep up with the evolution of technology in the Finance & Accounting sector. According to Mckinsey study top managers believe that the adoption of technology in operations, communications is 20-25 times faster than what they planned in the beginning of 2019.
Shortening product life cycle
– it is one of the major threat that Integration Announcement is facing in Finance & Accounting sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Stagnating economy with rate increase
– Integration Announcement can face lack of demand in the market place because of Fed actions to reduce inflation. This can lead to sluggish growth in the economy, lower demands, lower investments, higher borrowing costs, and consolidation in the field.
Increasing wage structure of Integration Announcement
– Post Covid-19 there is a sharp increase in the wages especially in the jobs that require interaction with people. The increasing wages can put downward pressure on the margins of Integration Announcement.
High level of anxiety and lack of motivation
– the Great Resignation in United States is the sign of broader dissatisfaction among the workforce in United States. Integration Announcement needs to understand the core reasons impacting the Finance & Accounting industry. This will help it in building a better workplace.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study The Merger of Union Bank of Switzerland and Swiss Bank Corporation (B): Integration Planning, Integration Announcement may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Finance & Accounting .
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Integration Announcement can face downward pressure on margins from increasing competition from international players. The international players have stable revenue in their home market and can use those resources to penetrate prominent markets illustrated in HBR case study The Merger of Union Bank of Switzerland and Swiss Bank Corporation (B): Integration Planning .
High dependence on third party suppliers
– Integration Announcement high dependence on third party suppliers can disrupt its processes and delivery mechanism. For example -the current troubles of car makers because of chip shortage is because the chip companies started producing chips for electronic companies rather than car manufacturers.
Technology disruption because of hacks, piracy etc
– The colonial pipeline illustrated, how vulnerable modern organization are to international hackers, miscreants, and disruptors. The cyber security interruption, data leaks, etc can seriously jeopardize the future growth of the organization.
Weighted SWOT Analysis of The Merger of Union Bank of Switzerland and Swiss Bank Corporation (B): Integration Planning Template, Example
Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers in the HBR case study The Merger of Union Bank of Switzerland and Swiss Bank Corporation (B): Integration Planning needs to zero down on the relative importance of each factor mentioned in the Strengths, Weakness, Opportunities, and Threats quadrants.
We can provide the relative importance to each factor by assigning relative weights. Weighted SWOT analysis process is a three stage process –
First stage for doing weighted SWOT analysis of the case study The Merger of Union Bank of Switzerland and Swiss Bank Corporation (B): Integration Planning is to rank the strengths and weaknesses of the organization. This will help you to assess the most important strengths and weaknesses of the firm and which one of the strengths and weaknesses mentioned in the initial lists are marginal and can be left out.
Second stage for conducting weighted SWOT analysis of the Harvard case study The Merger of Union Bank of Switzerland and Swiss Bank Corporation (B): Integration Planning is to give probabilities to the external strategic factors thus better understanding the opportunities and threats arising out of macro environment changes and developments.
Third stage of constructing weighted SWOT analysis of The Merger of Union Bank of Switzerland and Swiss Bank Corporation (B): Integration Planning is to provide strategic recommendations includes – joining likelihood of external strategic factors such as opportunities and threats to the internal strategic factors – strengths and weaknesses. You should start with external factors as they will provide the direction of the overall industry. Secondly by joining probabilities with internal strategic factors can help the company not only strategic fit but also the most probably strategic trade-off that Integration Announcement needs to make to build a sustainable competitive advantage.
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